Galaxy Bikes again this week had a good roll over. After being insolvent we are getting back on our feet. The readings this week especially the one by Larry Greiner (1972) helped to fill in some of the gaps in possible reasons why we struggled and went insolvent.
Reasons for this that especially sunk in was the theory behind revolutions and evolutions. He describes that it is an active part of building an organisation but I can also link it to the way in which we built our team. First, explanations around how the size of an organisation and employees can cause problems. Our team went from having to little capacity to far too much capacity in the space of one roll over thus resulting in a rather ridiculous finished holding goods cost and thus contributing to our financial debt. We developed problems of coordination within the team and dynamics brike down much like our company. The stage of revolution continued as our market share diminished and we all realised that something had to give.
Ok so looking forward to this week, the readings this week helped me to put this into greater perspective and understand the competition a bit better. At some point, some of the economic powerhouses have to enter a stage of revolution like we have done. perhaps this is already being seen as SHV's have dropped and other smaller firms are being to make a dent in their earnings.
Following the stages of growth can also be seen in the team this week. Greiner (1972) explains that stage 5 collaboration is based around quick problem solving through team actions, a combined view across all areas and experimenting in new practices. This week we are taking risks to grow our business in a market dominated by 3 large players. The real questions is around are we taking a calculated risk? I know we are not repeating past mistakes so that is a bonus. The other impact is what other problems will crop up because of our decisions this week and will we be in a strong position to continue into next weeks double roll over?
Greiner, L. E. (1972). Evolution and revolution as organizations grow. Harvard Business Review, 50(4), 37--46.